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Indian farmers lobby for potash price cut (POT, URALL)

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India is the most important market for potash in the world -- so if its farmers are threatening to go on a fertilizer strike, it is actually great news for the world's potash producers like PotashCorp ( POT , quote ) and Uralkali ( URALL , quote ).

As of last week, Indian importers are lobbying for a $50-per-ton break in simple diammonium phosphates and $45 a ton on complex fertilizers.

They argue that the rupee is weakening so much that they are having trouble affording the fertilizer their fields need.

The math is simple. When the rupee was stronger, they could buy more potash, which is quoted in dollars around the world like many other commodities.

But now, prices have touched the pain level in real terms, so these farmers are fighting back once more .

Uralkali is thinly traded here but reacted strongly -- to the upside -- in Moscow and London on this news.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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